- Constrained levels of supply have been a key driver of strong rental growth recorded across the Big Nine office markets over the last two years. Limited speculative development, coupled with strong demand has intensified competition for best-in-class space.
- This supply constraint is expected to persist, with Big Nine future annual completions forecast to average 911,000 sq ft over the next three years (2026–28). This represents a 48% reduction compared with the 10-year annual average of 1.8m sq ft.
- Concerns around development viability remain a key factor suppressing new supply. Elevated build and financing costs continue to challenge scheme feasibility, particularly for speculative office development, despite robust occupational fundamentals.
- These pressures are most acute at a city level, even in historic regional development hotspots of Manchester, Birmingham and Glasgow. Cautious developer and lender sentiment will continue to reinforce the current supply and demand imbalance fueling robust rental growth for prime, well located and sustainable buildings.
Big Nine future office supply constrained
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Guy Spencer
Director, Head of National Capital Markets
London
Capital Markets Group, Investment
+44 7836 781252
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